TNT to purchase key Chinese logistics firm
(Xinhua)
Updated: 2005-12-10 09:43

Dutch postal and logistics company TNT has said that it plans to purchase a leading Chinese logistics operator in an effort to increase its presence in the huge market.

Upon completion of the acquisition process by the end of next year, TNT will become the largest privately owned transportation network for freight and parcels in China, said Kenneth S. McCall, chief executive of TNT China, here in Shanghai.

TNT has signed a Letter of Intent for the deal with China's leading freight and parcels transportation service provider HOAU Logistics Group, but the detailed financial schemes are yet to be negotiated.

TNT China, with its regional headquarters in Shanghai, already operates the largest distribution network, with 140 operating centers in over 600 cities across the country.

Established in 1995, HOAU, based in northeast China's Heilongjiang Province, has the largest privately owned road transportation network in China and is currently one of the leading road transportation companies of freight and parcels.

It has some 1,100 operating centers in the country and serves over 170,000 clients in express consumables, accessories, household appliances, medicine, high-tech products and other fields.

Wang Zhenhua, president of HOAU, said he is confident in the company's future as TNT will have more advantages in brand effect, human resources, equipment and service channels.